UK house prices end the year 1.8% lower, says Nationwide
British house prices fell by 1.8% in 2023, showed data from Nationwide. This marks the biggest decline over the course of a year since 2008 during the global financial crisis.
However, IGTV financial analyst Angeline Ong investigates why there are chinks of light for the property sector in 2024.
(AI Video Summary)
British house prices fall more than expected
According to Nationwide, British house prices have fallen more than expected, dropping by 1.8% over the last year. Economists initially predicted a smaller fall of 1.4%. On a monthly basis, prices in December remained the same as in November. However, the recent decrease in mortgage rates suggests that the housing market may be stabilising.
More volatile currency market
In the currency market, there has been increased volatility due to changes in rhetoric from central banks. The chart provided in the video shows the British pound compared to the US dollar, displaying a strong upward trend since mid-October. However, this trend has started to become more uncertain as central banks' opinions differ. Particularly, the Bank of England seemed more bullish than both the Federal Reserve (Fed) and the European Central Bank (ECB) in their recent policy statements.
For traders dealing with this currency pair, the focus will now be on the actions and statements of the policy hawks, especially since the Bank of England took a more hawkish stance compared to the Fed and the ECB. The November Consumer Price Index (CPI) report will play a significant role in determining future trends. Traders are keen to see if the Bank of England maintains its hawkish stance or if it aligns more with the Fed and the ECB.
To summarise, house prices in the UK have fallen more than expected, but recent mortgage rate decreases suggest some stability. The currency market has become more volatile due to central banks expressing different views. Traders will be closely watching the Bank of England's stance and eagerly awaiting the November CPI report to determine future trends.
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